Illicit Crypto Laundering Network Across 30 Countries Busted

Key Points:

• A UK-led investigation uncovered a crypto laundering network used by Russian spies and European drug traffickers to evade sanctions through cryptocurrency.
• The network, involving companies Smart and TGR, operated in over 30 countries and facilitated the exchange of cash for cryptocurrency.

According to the Financial Times, a wide-ranging operation led by authorities in the UK has disrupted a crypto laundering network serving Russian espionage and European drug trafficking that allowed sanctioned individuals to bypass financial restrictions using cryptocurrency.

Read more: UK Financial Regulator to Roll Out Crypto Oversight by 2026

UK-Led Operation Uncovers Multibillion-Dollar Crypto Money Laundering Network

The investigation, termed “Operation Destabilise,” was led by the UK’s National Crime Agency, or NCA, and centred on two firms, Smart and TGR, that acted as financial conduits for criminals and sanctioned persons globally.

The crypto laundering network operated in more than 30 countries, serving notorious groups such as the Kinahan cartel, Irish cocaine traffickers involved in violent crimes, and Russian operatives linked to cyberattacks. The operation ran from late 2022 through mid-2023, revealing how criminal organizations and hostile states are increasingly turning to cryptocurrencies because traditional banking systems are less available to them.

Tether Becomes a Key Tool in Global Money Laundering Operations

The case highlights the growing involvement of cryptocurrencies in money laundering, which has risen to more than £100 billion annually through the UK, with up to £5 billion of that total being crypto. Increased cryptocurrency use is part of the problem because large amounts of physical cash are very difficult to move, particularly during the COVID-19 pandemic when global travel restrictions were imposed.

In addition to action against the crypto laundering network, it also underlines greater confidence in the rise of Tether, which is turning into a favourite among criminals due to its stable character.

Notably, Wall Street’s Cantor Fitzgerald recently bought 5% in Tether, while its CEO Howard Lutnick has emerged to be an outspoken champion for this stablecoin, entrenching its place in international crime more solidly than ever.